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Posts Tagged ‘Currency’

Why would you ever use BitCoins?

April 12, 2013 72 comments

From $266 to $54.25 in a matter of hours. An 80% fall puts the dramatic crash of the dot-com bubble at the beginning of the century to shame. Even Cypriot banking customers were recently allowed to keep more of their deposits. And this is the “currency” that is supposed to compete and replace fiat currencies, like the US dollar and the Euro, to create a more stable and trust worthy financial system.

BitCoin 2013-04-11

Source: bitcoin.clarkmoody.com

Advocates of BitCoins usually argues that it is the lack of government involvement, central banks and limited and finite supply that make BitCoins a valid and superior alternative to fiat currencies. Business Insider (BI) argues very well against this idea and concludes that BitCoins don’t have any intrinsic value but that fiat currencies do. BI points out that fiat currencies has the “slight” advantage, over BitCoins, of a legal system, authorities and the full force of the army backing them. Whilst this is a strong argument, let’s forget that for a minute, just for arguments sake, and imagine that BitCoins has replaced fiat currencies and then just ask us, why would you ever use a BitCoin?

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We must avoid an accidental Greek Euro exit

With the Greek election on Sunday the debate and speculation around what a Greek exit from the Eurozone, and possibly the EU, would mean is reaching fever pitch. Unfortunately, the analysis has for the most part been rather short sighted, mostly in the form of detailed, but doomed to be inaccurate, calculations trying to forecast what bank will be hurt the most or the least or how much the ECB would suffer. In yesterday’s FT, we finally saw some sober analysis in the Euro debate from Moritz Kraemer, head of EMEA sovereign ratings at Standard & Poor’s. Read more…

Greek Euro exit unlikely

May 12, 2011 1 comment

Greece cannot exit the Euro. Greece does not want to exit the Euro. Greece will not exit the Euro. Just think about what would happen if Greece did.

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